Archive for December, 2012


CASE 2012-0075: REPUBLIC OF THE PHILIPPINES, REPRESENTED BY THE REGIONAL EXECUTIVE DIRECTOR OF THE DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES, REGIONAL OFFICE NO. 3 VS. ROMAN CATHOLIC ARCHBISHOP OF MANILA; SAMAHANG KABUHAYAN NG SAN LORENZO KKK, INC., REPRESENTED BY ITS VICE PRESIDENT ZENAIDATURLA VS. ROMAN CATHOLIC ARHBISHOP OF MANILA (G.R. NO. 192975/ G.R. NO. 192975, 12 NOVEMBER 2012, PERLAS-BERNABE, J.) SUBJECT/S: MOTION TO DISMISS; EQUITABLE ESTOPPEL; REVERSION SUITS. (BRIEF TITLE: REPUBLIC VS. ROMAN CATHOLIC ARCHBISHOP OF MANILA).

 

 

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SUBJECTS/DOCTRINES/DIGESTS:

 

 

THE REPUBLIC FILED A CASE FOR ANNULMENT OF CERTAIN TITLES BELONGING TO THE ROMAN CATHOLIC ARCHBISHOP OF MANILA (RCAM)  AND TO CERTAIN INDIVIDUALS WHICH PURCHASED SUBJECT LOTS FROM THE RCAM.

 

 

RCAM MOVED TO DISMISS SINCE THE SUBJECT LOTS WERE GRANTED TO RCAM BY VIRTUE OF A DECISION OF AN RTC ACTING AS LAND REGISTRATION COURT AND THE  RTC CANNOT ANNUL A JUDGEMENT OF ANOTHER RTC. TRIAL COURT DENIED MOTION TO DISMISS. CA REVERSED TRIAL COURT’S ORDER ON THE GROUND THAT THE CASE SHOULD BE FILED AT CA SINCE IT (CA) ALONE CAN INVALIDATE RTC JUDGMENT. FURTHERMORE, THE STATE IS IN ESTOPPEL FOR NOT TAKING ACTION AFTER SO LONG A PERIOD OF TIME.

 

 

DOES RTC HAVE JURISDICTION OVER THE CASE?

 

 

YES.

 

 

IT IS AXIOMATIC THAT THE NATURE OF AN ACTION AND WHETHER THE TRIBUNAL HAS JURISDICTION OVER SUCH ACTION ARE TO BE DETERMINED FROM THE MATERIAL ALLEGATIONS OF THE COMPLAINT, THE LAW IN FORCE AT THE TIME THE COMPLAINT IS FILED, AND THE CHARACTER OF THE RELIEF SOUGHT IRRESPECTIVE OF WHETHER THE PLAINTIFF IS ENTITLED TO ALL OR SOME OF THE CLAIMS AVERRED.

 

 

THE MATERIAL AVERMENTS, AS WELL AS THE CHARACTER OF THE RELIEF PRAYED FOR BY PETITIONERS IN THE COMPLAINT BEFORE THE RTC, SHOW THAT THEIR ACTION IS ONE FOR CANCELLATION OF TITLES AND REVERSION, NOT FOR ANNULMENT OF JUDGMENT OF THE RTC. THE COMPLAINT ALLEGED THAT LOT NOS. 43 TO 50, THE PARCELS OF LAND SUBJECT MATTER OF THE ACTION, WERE NOT THE SUBJECT OF THE CFI’S JUDGMENT IN THE RELEVANT PRIOR LAND REGISTRATION CASE. HENCE, PETITIONERS PRAY THAT THE CERTIFICATES OF TITLE OF RCAM BE CANCELLED WHICH WILL NOT NECESSITATE THE ANNULMENT OF SAID JUDGMENT.

 

 

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THE CA  APPLIED EQUITABLE ESTOPPEL AGAINST THE STATE AND CONSIDERED IT BARRED FROM FILING A REVERSION SUIT. IT EXPLAINED THAT THE LOTS WERE ALREADY ALIENATED TO INNOCENT PURCHASERS FOR VALUE AND THE STATE FAILED TO TAKE ACTION TO CONTEST THE TITLE FOR AN UNREASONABLE LENGTH OF TIME. HENCE, THE CA ORDERED THE RTC TO GRANT RCAM’S MOTION TO DISMISS. WAS CA CORRECT?

 

 

NO.

 

 

IT IS PREMATURE AT THIS STAGE TO APPLY THE DOCTRINE OF EQUITABLE ESTOPPEL BECAUSE THE PARTIES HAVE NOT YET PRESENTED ANY EVIDENCE THAT WOULD SUPPORT SUCH FINDING.

 

 

TO READ THE DECISION JUST DOWNLOAD THE FILE BELOW.

SCD-2012-0075-REPUBLIC NOV 2012

LEGAL NOTE 0134: THE MACEDA LAW. SUPPOSE I HAVE ALREADY PAID INTALLMENT PAYMENTS FOR A  HOUSE AND LOT BUT I CAN NO LONGER AFFORD TO PAY THE FUTURE INSTALLMENTS, WHAT ARE MY RIGHTS?

 

 

AN ACT TO PROVIDE PROTECTION TO BUYERS OF REAL ESTATE ON INSTALLMENT PAYMENTS. (REP. ACT NO. 6552, 26 AUGUST 1972)

 

 

WHAT IS THE NAME OF THE ACT?

 

 

THE “REALTY INSTALLMENT BUYER ACT” OR THE MACEDA LAW.

 

 

WHAT IS THE PUBLIC POLICY BEHIND THE MACEDA LAW?

 

 

TO PROTECT BUYERS OF REAL ESTATE ON INSTALLMENT PAYMENTS AGAINST ONEROUS AND OPPRESSIVE CONDITIONS.

 

 

WHAT ARE COVERED?

 

 

ALL TRANSACTIONS OR CONTRACTS INVOLVING THE SALE OR FINANCING OF REAL ESTATE ON INSTALLMENT PAYMENTS, INCLUDING RESIDENTIAL CONDOMINIUM APARTMENTS WHERE THE BUYER HAS PAID AT LEAST TWO YEARS OF INSTALMENTS.

 

 

WHAT ARE NOT COVERED?

 

 

INDUSTRIAL LOTS, COMMERCIAL BUILDINGS AND SALES TO TENANTS UNDER REPUBLIC ACT NUMBERED THIRTY-EIGHT HUNDRED FORTY-FOUR, AS AMENDED BY REPUBLIC ACT NUMBERED SIXTY-THREE HUNDRED EIGHTY-NINE.

 

 

SUPPOSE BUYER INDICATED ABOVE IS IN DEFAULT WHAT ARE HIS RIGHTS?

 

 

IF THE BUYER HAS PAID AT LEAST TWO YEARS OF INSTALLMENTS HE HAS THE FOLLOWING RIGHTS:

 

 

(A)   TO PAY, WITHOUT ADDITIONAL INTEREST, THE UNPAID INSTALLMENTS DUE WITHIN THE TOTAL GRACE PERIOD EARNED BY HIM WHICH IS HEREBY FIXED AT THE RATE OF ONE MONTH GRACE PERIOD FOR EVERY ONE YEAR OF INSTALLMENT PAYMENTS MADE: PROVIDED, THAT THIS RIGHT SHALL BE EXERCISED BY THE BUYER ONLY ONCE IN EVERY FIVE YEARS OF THE LIFE OF THE CONTRACT AND ITS EXTENSIONS, IF ANY.

 

 

(B)   IF THE CONTRACT IS CANCELED, THE SELLER SHALL REFUND TO THE BUYER THE CASH SURRENDER VALUE OF THE PAYMENTS ON THE PROPERTY EQUIVALENT TO FIFTY PER CENT OF THE TOTAL PAYMENTS MADE, AND, AFTER FIVE YEARS OF INSTALLMENTS, AN ADDITIONAL FIVE PER CENT EVERY YEAR BUT NOT TO EXCEED NINETY PER CENT OF THE TOTAL PAYMENTS MADE: PROVIDED, THAT THE ACTUAL CANCELLATION OF THE CONTRACT SHALL TAKE PLACE AFTER THIRTY DAYS FROM RECEIPT BY THE BUYER OF THE NOTICE OF CANCELLATION OR THE DEMAND FOR RESCISSION OF THE CONTRACT BY A NOTARIAL ACT AND UPON FULL PAYMENT OF THE CASH SURRENDER VALUE TO THE BUYER.

 

 

 

SUPPOSE THE BUYER MADE DOWNPAYMENTS, DEPOSITS OR OPTIONS. ARE THESE ALSO COVERED?

 

 

YES.

 

 

DOWN PAYMENTS, DEPOSITS OR OPTIONS ON THE CONTRACT SHALL BE INCLUDED IN THE COMPUTATION OF THE TOTAL NUMBER OF INSTALLMENT PAYMENTS MADE.

 

 

SUPPOSE THE BUYER PAID LESS THAN TWO YEARS INSTALLMENT WHAT IS HIS RIGHT IN CASE HE COMMITS DEFAULT?

 

 

THE SELLER SHALL GIVE THE BUYER A GRACE PERIOD OF NOT LESS THAN SIXTY DAYS FROM THE DATE THE INSTALLMENT BECAME DUE.

 

 

SUPPOSE THE BUYER FAILS TO PAY THE INSTALLMENT DUE AFTER THE GRACE PERIOD WHAT CAN THE SELLER DO?

 

 

THE SELLER MAY CANCEL THE CONTRACT AFTER THIRTY DAYS FROM RECEIPT BY THE BUYER OF THE NOTICE OF CANCELLATION OR THE DEMAND FOR RESCISSION OF THE CONTRACT BY A NOTARIAL ACT.

 

 

CAN THE BUYER SELL OR ASSIGN HIS RIGHTS?

 

 

YES.

 

 

THE BUYER SHALL HAVE THE RIGHT TO SELL HIS RIGHTS OR ASSIGN THE SAME TO ANOTHER PERSON OR TO REINSTATE THE CONTRACT BY UPDATING THE ACCOUNT DURING THE GRACE PERIOD AND BEFORE ACTUAL CANCELLATION OF THE CONTRACT. THE DEED OF SALE OR ASSIGNMENT SHALL BE DONE BY NOTARIAL ACT.

 

 

CAN THE BUYER PAY IN ADVANCE THE INSTALLMENTS?

 

 

YES. HE CAN PAY IN FULL. AND THE FULL PAYMENT CAN BE ANNOTATED IN THE CERTIFICATE OF TITLE.

 

 

 

THE ACT IS REPRINTED BELOW:

 

AN ACT TO PROVIDE PROTECTION TO BUYERS OF REAL ESTATE ON INSTALLMENT PAYMENTS. (Rep. Act No. 6552)

 

Sec. 1.   This Act shall be known as the “Realty Installment Buyer Act.”

 

Sec. 2.    It is hereby declared a public policy to protect buyers of real estate on installment payments against onerous and oppressive conditions.

 

Sec. 3.   In all transactions or contracts involving the sale or financing of real estate on installment payments, including residential condominium apartments but excluding industrial lots, commercial buildings and sales to tenants under Republic Act Numbered Thirty-eight hundred forty-four, as amended by Republic Act Numbered Sixty-three hundred eighty-nine, where the buyer has paid at least two years of installments, the buyer is entitled to the following rights in case he defaults in the payment of succeeding installments:

 

(a)   To pay, without additional interest, the unpaid installments due within the total grace period earned by him which is hereby fixed at the rate of one month grace period for every one year of installment payments made: Provided, That this right shall be exercised by the buyer only once in every five years of the life of the contract and its extensions, if any.

 

(b)   If the contract is canceled, the seller shall refund to the buyer the cash surrender value of the payments on the property equivalent to fifty per cent of the total payments made, and, after five years of installments, an additional five per cent every year but not to exceed ninety per cent of the total payments made: Provided, That the actual cancellation of the contract shall take place after thirty days from receipt by the buyer of the notice of cancellation or the demand for rescission of the contract by a notarial act and upon full payment of the cash surrender value to the buyer.

 

Down payments, deposits or options on the contract shall be included in the computation of the total number of installment payments made.

 

Sec. 4.   In case where less than two years of installments were paid, the seller shall give the buyer a grace period of not less than sixty days from the date the installment became due.

 

If the buyer fails to pay the installments due at the expiration of the grace period, the seller may cancel the contract after thirty days from receipt by the buyer of the notice of cancellation or the demand for rescission of the contract by a notarial act.

 

Sec. 5.   Under Section 3 and 4, the buyer shall have the right to sell his rights or assign the same to another person or to reinstate the contract by updating the account during the grace period and before actual cancellation of the contract. The deed of sale or assignment shall be done by notarial act.

 

Sec. 6.  The buyer shall have the right to pay in advance any installment or the full unpaid balance of the purchase price any time without interest and to have such full payment of the purchase price annotated in the certificate of title covering the property.

 

Sec. 7.   Any stipulation in any contract hereafter entered into contrary to the provisions of Sections 3, 4, 5 and 6, shall be null and void.

 

Sec. 8.   If any provision of this Act is held invalid or unconstitutional, no other provision shall be affected thereby.

 

Sec. 9.  This Act shall take effect upon its approval.

 

Approved:  August 26, 1972.